Commercial Television Station in Mexico

In 1949 Rómulo O'Farril received the first license to operate a commercial television station in Mexico (Channel 4), and he began broadcasts in July 1950. O'Farril had made his fortune primarily in the automobile business, but his quick entry into mass communications revealed the hand of Miguel Alemán Valdés. Supporters of Alemán's presidential aspirations gained control of the newspaper Novedades in 1946, and Jorge Pasquel, an intimate associate of Alemán, assumed editorial control. Once in office, Alemán persuaded O'Farril to take over Novedades. Subsequently, O'Farril was also granted the concession to operate radio station XEX, giving the auto tycoon (aided importantly by his son, Rómulo Jr.) the opportunity to learn the broadcasting business and to develop the technical capacity to move into television broadcasting. Given the association with Alemán, O'Farril's successful bid for a television broadcasting license was no coincidence.

Azcarraga finally acquired the second license granted by the Mexican government for a commercial television broadcasting station (Channel 2), beginning transmissions in May 1951. Other licenses were also approved, including one to Gonzilez Camarena (Channel 5). It was clear from the beginning that the major contestants in this formative period of Mexican television would be O'Farril and Azcarraga, although the auto magnate held the backing of the former president and an operational advantage of nearly a year over his adversary. Nonetheless, after a bitter and extremely costly period of competition, O'Farril approached Azcarraga with a merger offer in early 1955. Financially wounded by the savage contest, Azcarraga accepted the overture, but he was careful to maintain control over the new corporation, named Telesistema Mexicano (TSM). Shortly thereafter González Camarena threw his lot in with the new company and rejoined his former employer, giving TSM an additional technical and engineering asset. By March 1955, TSM essentially controlled Mexican television, as the holding company possessed three stations (channels 2, 4, and 5). The combination of Azcarraga's hold over entertainment talent, his clout among large advertisers, the profitability of his radio holdings, and the political privileges afforded discreetly by Alemán gave TSM an unassailable advantage over the competition for nearly 15 years. Utilizing his radio connections, Azcarraga quickly developed a web of TSM affiliates in the major urban markets that initially overwhelmed potential rivals.